CONVERTIBLE NOTES

6 Months Ended

Jan. 31, 2019

Debt Disclosure [Abstract]

CONVERTIBLE NOTES

NOTE 6 – CONVERTIBLE NOTES

At January 31, 2019 and July 31, 2018, convertible note consisted of the following:

	January 31,			July 31,
	2019			2018
Convertible promissory notes issued	$	500,000		$	500,000
Less discount		(288,706	)		(417,330	)
Liability component as at date of issue		211,294			82,670
Accrued interest		20,871			8,268
Liability component	$	232,165		$	90,938

Pursuant to a note purchase agreement dated March 20, 2018 between the Company and a non-affiliated lender, the lender made loans to the Company in the total amount of $500,000, for which the Company issued two-year 5% convertible notes. The notes are convertible into common stock of the Company at $0.02 per share. The Company agreed to grant the lender a security interest in equipment which was purchased from the proceeds of the notes.

Interest of 5% is payable annually until the settlement date. No interest was paid during the six months ended January 31, 2019.